SUNTECK REALTY 2018-19 Annual Report Analysis

Sun, 31 Mar

SUNTECK REALTY has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

SUNTECK REALTY Income Statement Analysis

• Operating income during the year fell 3.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 44.1% in FY19 as against 48.1% in FY18.
• Depreciation charges increased by 29.7% and finance costs decreased by 57.9% YoY, respectively.
• Other income grew by 277.6% YoY.
• Net profit for the year grew by 4.9% YoY.
• Net profit margins during the year grew from 25.9% in FY18 to 28.1% in FY19.

SUNTECK REALTY Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	8,883	8,568	-3.5%
Other income	Rs m	91	343	277.6%
Total Revenues	Rs m	8,974	8,911	-0.7%
Gross profit	Rs m	4,276	3,782	-11.6%
Depreciation	Rs m	17	22	29.7%
Interest	Rs m	975	411	-57.9%
Profit before tax	Rs m	3,375	3,693	9.4%
Tax	Rs m	1,078	1,284	19.1%
Profit after tax	Rs m	2,297	2,409	4.9%
Gross profit margin	%	48.1	44.1
Effective tax rate	%	32.0	34.8
Net profit margin	%	25.9	28.1

SUNTECK REALTY Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 10 billion as compared to Rs 12 billion in FY18, thereby witnessing an decrease of -21.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 513 million during FY18, a growth of 144.2%.
• Current assets fell 2% and stood at Rs 36 billion, while fixed assets rose 73% and stood at Rs 6 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 42 billion as against Rs 40 billion during FY18, thereby witnessing a growth of 4%.

SUNTECK REALTY Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	26,290	28,309	7.7
Current Liabilities	Rs m	12,391	9,689	-21.8
Long-term Debt	Rs m	513	1,254	144.2
Total Liabilities	Rs m	40,409	42,195	4.4
Current assets	Rs m	36,862	36,074	-2.1
Fixed Assets	Rs m	3,546	6,121	72.6
Total Assets	Rs m	40,409	42,195	4.4

SUNTECK REALTY Cash Flow Statement Analysis

• SUNTECK REALTY's cash flow from operating activities (CFO) during FY19 stood at Rs -79 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 723 million, an improvement of 302.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -224 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 420 million from the Rs -105 million net cash flows seen during FY18.

SUNTECK REALTY Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	-1,685	-79	-
Cash Flow from Investing Activities	Rs m	180	723	302.6%
Cash Flow from Financing Activities	Rs m	1,401	-224	-
Net Cash Flow	Rs m	-105	420	-

Current Valuations for SUNTECK REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an improvement from the EPS of Rs 16.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 460.7, stands at 28.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 23.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	63.3	61.1
TTM Earnings per share	Rs	16.4	17.2
Diluted earnings per share	Rs	15.7	16.4
Price to Cash Flow	x	26.8	23.7
TTM P/E ratio	x	27.1	28.0
Price / Book Value ratio	x	2.0	2.0
Market Cap	Rs m	52,408	57,654
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for SUNTECK REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY19, from 3.0x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 10.0x during FY19, from 4.5x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.5% during FY19, from 8.7% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 13.9% during FY19, from 16.2% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 6.7% during FY19, from 8.1% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	3.0	3.7
Debtors’ Days	Days	1,194	1,579
Interest coverage	x	4.5	10.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	6.7
Return on equity	%	8.7	8.5
Return on capital employed	%	16.2	13.9

To see how SUNTECK REALTY has performed over the last 5 years, please visit here.

SUNTECK REALTY Share Price Performance

Over the last one year, SUNTECK REALTY share price has moved up from Rs 423.5 to Rs 460.7, registering a gain of Rs 37.2 or around 8.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for SUNTECK REALTY and quarterly results for SUNTECK REALTY)

Read: Latest Annual Report Analysis of SUNTECK REALTY